Pro-Dex (PDEX) investor relations material

Company history and turnaround

• Faced significant losses in 2011–2012, prompting a board overhaul and cost-cutting focus.

• Reduced executive overhead and implemented strict cost controls, leading to improved financials.

• Invested in technology, acquired a second facility, and established long-term OEM contracts.

• Employee base grew from 55 to 208, with many original staff retained through challenging periods.

• Share buybacks reduced outstanding shares from over 4 million to 3.2 million in ten years.

Product innovation and market position

• Developed proprietary Adaptive Torque Limiting technology for surgical screwdrivers, enabling precise screw placement.

• Expanded product applications from cranial to thoracic, extremities, and spine surgeries.

• Five customers now use exclusive torque-limiting screwdrivers, with strong surgeon feedback.

• Repair services account for about 10% of business, with high margins and robust product longevity.

• Off-the-shelf branded products allow smaller customers access to advanced technology at lower entry costs.

Growth strategy and future plans

• Aggressive growth plans include expanding branded product lines and developing new articulating and spinal drivers.

• Actively pursuing mergers and acquisitions, targeting family-owned MedTech firms for diversification.

• Recent acquisition of APM, a long-time supplier, to enhance automation and add aerospace/defense capabilities.

• Business development team expansion and website investment underway to drive new customer engagement.

• Focus on leveraging engineering services and supporting startups and inventors for future growth.